Pensions company Legal & General (L&G) is outsourcing its IT infrastructure unit to IBM, with staff set to be transferred to the US IT giant and Manpower.
The company informed staff by e-mail in March that it was weighing up its options for the unit, known as Business Technology Services (BTS).
It emerged that IBM and Fujitsu had been shortlisted for the contracts and L&G did not rule out keeping the work in-house.
The company said in a statement, "Legal & General has concluded its IT infrastructure review, and decided that partnering with IBM to manage its IT infrastructure is the best option to underpin future business growth. Legal & General employees affected by this decision will be TUPE'd to IBM and Manpower."
L&G said it wants to ensure its IT infrastructure can support future business growth and reduce the risks associated with creating its own bespoke datacentre.
Other services that could be outsourced include infrastructure and operations, IT security operations and assurance, and parts of IT procurement and IT supplier relationship management.
In March, in an e-mail sent to workers, L&G said, "We are considering outsourcing these services with a single provider because we believe this will give us the most straightforward operating model - with clear accountability or provision of service. It will also allow us to make best use of the third party's technical and operational expertise."